1200 Federal Register / Vol. 76, No. 5 / Friday, January 7, 2011 / Notices 

1Request of the United States Postal Service to 

Add Priority Mail Contract 34 to Competitive 

Product List and Notice of Filing (Under Seal) of 

Contract and Supporting Data, December 30, 2010 

(Request). 

2 Decision of the Governors of the United States 

Postal Service on Establishment of Rates and 

Classes Not of General Applicability for Priority 

Mail Contract Group, April 27, 2009, at 1 

(Governors’ Decision No. 09–6). 

underlying costs and assumptions, 

pricing formulas, information relevant 

to the customer’s mailing profile, and 

cost coverage projections. Id. The Postal 

Service asks the Commission to protect 

customer-identifying information from 

public disclosure indefinitely. Id. at 7. 

II. Notice of Filings 

The Commission establishes Docket 

Nos. MC2011–18 and CP2011–57 to 

consider the Request pertaining to the 

proposed Priority Mail Contract 35 

product and the related contract, 

respectively. 

Interested persons may submit 

comments on whether the Postal 

Service’s filings in the captioned 

dockets are consistent with the policies 

of 39 U.S.C. 3632, 3633, or 3642, 39 CFR 

3015.5, and 39 CFR part 3020, subpart 

B. Comments are due no later than 

January 12, 2011. The public portions of 

these filings can be accessed via the 

Commission’s Web site (http:// 

www.prc.gov). 

The Commission appoints Paul L. 

Harrington to serve as Public 

Representative in these dockets. 

III. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

Nos. MC2011–18 and CP2011–57 to 

consider the matters raised in each 

docket. 

2. Pursuant to 39 U.S.C. 505, Paul L. 

Harrington is appointed to serve as 

officer of the Commission (Public 

Representative) to represent the 

interests of the general public in these 

proceedings. 

3. Comments by interested persons in 

these proceedings are due no later than 

January 12, 2011. 

4. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Shoshana M. Grove, 

Secretary. 

[FR Doc. 2011–129 Filed 1–6–11; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL REGULATORY COMMISSION 

[Docket Nos. MC2011–17 and CP2011–56; 

Order No. 634] 

New Postal Product 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is noticing a 

recently-filed Postal Service request to 

add Priority Mail Contract 34 to the 

competitive product list. This notice 

addresses procedural steps associated 

with this filing. 

DATES: Comments are due: January 12, 

2011. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http:// 

www.prc.gov. Commenters who cannot 

submit their views electronically should 

contact the person identified in FOR

FURTHER INFORMATION CONTACT by 

telephone for advice on alternatives to 

electronic filing. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

stephen.sharfman@prc.gov or 202–789– 

6820. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Notice of Filing 

III. Ordering Paragraphs 

I. Introduction 

In accordance with 39 U.S.C. 3642 

and 39 CFR 3020.30 et seq., the Postal 

Service filed a formal request and 

associated supporting information to 

add Priority Mail Contract 34 to the 

competitive product list.1 Priority Mail 

contracts enable the Postal Service to 

provide Priority Mail service to an 

individual customer at customized 

rates.2 The Postal Service asserts that 

Priority Mail Contract 34 is a 

competitive product ‘‘not of general 

applicability’’ within the meaning of 39 

U.S.C. 3632(b)(3). Request at 1. The 

Request has been assigned Docket No. 

MC2011–17. 

The Postal Service 

contemporaneously filed a redacted 

contract related to the proposed new 

product under 39 U.S.C. 3632(b)(3) and 

39 CFR 3015.5. Id., Attachment B. The 

instant contract has been assigned 

Docket No. CP2011–56. 

Request. To support its Request, the 

Postal Service filed six attachments as 

follows: 

• Attachment A—a redacted copy of 

Governors’ Decision No. 09–6, 

authorizing certain Priority Mail 

contracts, and a certification of the 

Governors’ vote; 

• Attachment B—a redacted copy of 

the contract; 

• Attachment C—proposed changes 

to the Mail Classification Schedule 

competitive product list that would add 

Priority Mail Contract 34 under 

Domestic Negotiated Service 

Agreements; 

• Attachment D—a Statement of 

Supporting Justification as required by 

39 CFR 3020.32; 

• Attachment E—a certification of 

compliance with 39 U.S.C. 3633(a); and 

• Attachment F—an application for 

non-public treatment of materials to 

maintain redacted portions of the 

contract, customer-identifying 

information, and related financial 

information under seal. 

In the Statement of Supporting 

Justification, Josen Punnoose, Manager, 

Shipping Support (A), Shipping 

Services, asserts that the service to be 

provided under the contract will cover 

its attributable costs, make a positive 

contribution to covering institutional 

costs, and increase contribution toward 

the requisite 5.5 percent of the Postal 

Service’s total institutional costs. Id., 

Attachment D at 1. Mr. Punnoose 

contends there will be no issue of 

market dominant products subsidizing 

competitive products as a result of this 

contract. Id. 

Related contract. The Postal Service 

included a redacted version of the 

related contract with the Request. Id., 

Attachment B. The contract is 

scheduled to become effective 1 

business day after the Commission 

issues all necessary regulatory 

approvals. Id., at 2. The contract will 

expire 3 years from the effective date 

unless, among other things, either party 

terminates the agreement upon 30 days’ 

written notice to the other party. Id. at 

3. The Postal Service represents that the 

contract is consistent with 39 U.S.C. 

3633(a). Id., Attachment D. 

The Postal Service filed much of the 

supporting materials, including the 

related contract, under seal. Id. 

Attachment F. It maintains that the 

redacted portions of the contract, 

customer-identifying information, and 

related financial information should 

remain confidential. Id. at 2–3. This 

information includes the price structure, 

underlying costs and assumptions, 

pricing formulas, information relevant 

to the customer’s mailing profile, and 

cost coverage projections. Id. The Postal 

Service asks the Commission to protect 

customer-identifying information from 

public disclosure indefinitely. Id. at 7. 

II. Notice of Filings 

The Commission establishes Docket 

Nos. MC2011–17 and CP2011–56 to 

consider the Request pertaining to the 

proposed Priority Mail Contract 34 

product and the related contract, 

respectively. 


jdjones on DSK8KYBLC1PROD with NOTICES
Federal Register / Vol. 76, No. 5 / Friday, January 7, 2011 / Notices 1201 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3For a detailed description of the Investor 

Support Program, see Securities Exchange Act 

Release No. 63270 (November 8, 2010), 75 FR 69489 

(November 12, 2010) (NASDAQ–2010–141) (notice 

of filing and immediate effectiveness)(the ‘‘ISP 

Filing’’). See also Securities Exchange Act Release 

No. 76505 (December 2, 2010), 75 FR 76505 

(December 8, 2010) (NASDAQ–2010–153)(notice of 

filing and immediate effectiveness regarding 

exclusion of partial trading days from certain ISP 

calculations). 

4The Commission has recently expressed its 

concern that a significant percentage of the orders 

of individual investors are executed at over the 

counter (‘‘OTC’’) markets, that is, at off-exchange 

markets; and that a significant percentage of the 

orders of institutional investors are executed in 

dark pools. Securities Exchange Act Release No. 

61358 (January 14, 2010), 75 FR 3594 (January 21, 

2010) (Concept Release on Equity Market Structure, 

‘‘Concept Release’’). In the Concept Release, the 

Commission has recognized the strong policy 

preference under the Act in favor of price 

transparency and displayed markets. The 

Commission published the Concept Release to 

invite public comment on a wide range of market 

structure issues, including high frequency trading 

and un-displayed, or ‘‘dark,’’ liquidity. See also 

Mary L. Schapiro, Strengthening Our Equity Market 

Structure (Speech at the Economic Club of New 

York, Sept. 7, 2010) (‘‘Schapiro Speech,’’ available 

on the Commission Web site)(comments of 

Commission Chairman on what she viewed as a 

troubling trend of reduced participation in the 

equity markets by individual investors, and that 

nearly 30 percent of volume in U.S.-listed equities 

is executed in venues that do not display their 

liquidity or make it generally available to the 

public). 

5The term ‘‘Participation Ratio’’ is defined as: For 

a given member in a given month, the ratio of (i) 

the number of shares of liquidity provided in orders 

entered by the member through any of its NASDAQ 

ports and executed in the NASDAQ Market Center 

during such month to (ii) the consolidated volume 

of shares of System Securities in executed orders 

Continued 

Interested persons may submit 

comments on whether the Postal 

Service’s filings in the captioned 

dockets are consistent with the policies 

of 39 U.S.C. 3632, 3633, or 3642, 39 CFR 

part 3015, and 39 CFR part 3020, 

subpart B. Comments are due no later 

than January 12, 2011. The public 

portions of these filings can be accessed 

via the Commission’s Web site (http:// 

www.prc.gov). 

The Commission appoints Paul L. 

Harrington to serve as Public 

Representative in these dockets. 

III. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

Nos. MC2011–17 and CP2011–56 for 

consideration of the matters raised in 

each docket. 

2. Pursuant to 39 U.S.C. 505, Paul L. 

Harrington is appointed to serve as 

officer of the Commission (Public 

Representative) to represent the 

interests of the general public in these 

proceedings. 

3. Comments by interested persons in 

these proceedings are due no later than 

January 12, 2011. 

4. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Shoshana M. Grove, 

Secretary. 

[FR Doc. 2011–95 Filed 1–6–11; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63628; File No. SR– 

NASDAQ–2010–154] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by the 

NASDAQ Stock Market LLC To 

Enhance the Investor Support Program 

January 3, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

21, 2010, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NASDAQ proposes changes to the fee 

provisions of Rule 7014 (Investor 

Support Program) to enhance the 

Investor Support Program in respect of: 

Certain assumed Baseline Participation 

Ratio values for firms that did not add 

liquidity in August 2010; the addition of 

liquidity through Indirect Order Flow; 

liquidity executed at or above $1; and a 

certification provision. 

The text of the proposed rule change 

is available at http:// 

nasdaq.cchwallstreet.com, at 

NASDAQ’s principal office, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NASDAQ included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. 

NASDAQ has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing changes to 

the fee provisions of Rule 7014 to 

enhance the Investor Support Program 

in respect of: Certain assumed Baseline 

Participation Ratio values for firms that 

did not add liquidity in August 2010; 

the addition of liquidity through 

Indirect Order Flow; liquidity executed 

at or above $1; and a certification 

provision. 

The Exchange established an Investor 

Support Program (‘‘ISP’’) that enables 

NASDAQ members to earn a monthly 

fee credit for providing additional 

liquidity to NASDAQ and increasing the 

NASDAQ-traded volume of what are 

generally considered to be retail and 

institutional investor orders in 

exchange-traded securities (‘‘targeted 

liquidity’’).3 The goal of the ISP is to 

incentivize members to provide such 

targeted liquidity to the NASDAQ 

Market Center.4 The Exchange noted in 

the ISP Filing that maintaining and 

increasing the proportion of orders in 

exchange-listed securities executed on a 

registered exchange (rather than relying 

on any of the available off-exchange 

execution methods) would help raise 

investors’ confidence in the fairness of 

their transactions and would benefit all 

investors by deepening NASDAQ’s 

liquidity pool, supporting the quality of 

price discovery, promoting market 

transparency and improving investor 

protection. 

The Exchange now proposes several 

adjustments to the Investor Support 

Program. The primary objective in 

making these adjustments is to moderate 

the ability of members (firms), on a 

prospective basis, from gaining ISP fee 

credits without effectively adding 

targeted liquidity to NASDAQ. This 

proposal clearly furthers the ISP goal of 

incentivizing members to provide 

targeted liquidity to the Exchange. 

First, the ISP generally compares a 

member’s Participation Ratio for the 

current month to the same member’s 

Participation Ratio in August 2010 

(known as the ‘‘Baseline Participation 

Ratio’’).5 This ratio is determined by 


jdjones on DSK8KYBLC1PROD with NOTICES